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Understanding Pre-Dispute Arbitration Agreements

The document discusses pre-dispute arbitration agreements which stipulate that conflicts between contracting parties will be resolved through binding arbitration rather than courts. It notes the lack of a structured proof process in arbitration and limited ability to appeal an arbitrator's decision.

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stephen changaya
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3 views1 page

Understanding Pre-Dispute Arbitration Agreements

The document discusses pre-dispute arbitration agreements which stipulate that conflicts between contracting parties will be resolved through binding arbitration rather than courts. It notes the lack of a structured proof process in arbitration and limited ability to appeal an arbitrator's decision.

Uploaded by

stephen changaya
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Answer

A pre-dispute arbitration agreement is an agreement reached by contracting parties

prior to the occurrence of any challenges or problems. The agreement stipulates that any

conflicts between the parties shall be resolved through binding arbitration rather than through

the courts. In business transactions, such contracts are highly common.

The lack of a structured proof process.

This means you're depending on the arbitrator's competence and experience to comb

through the evidence rather than a judge or jury. There are no interrogatories or depositions,

and the arbitration process does not contain a discovery phase.

Detractors point to the lack of a formal appeals process and the fact that the process is

usually binding. If you are a party to binding arbitration and want to challenge the arbitrator's

decision, you may not be allowed to do so unless you have cause to believe the arbitrator

acted with malice or bias. Mandatory arbitration clauses in consumer contracts, employment

contracts, and practically every online agreement you accept work in the company's benefit

rather than the employee's or consumers. Finally, the fact that arbitration hearings are not

open to the public may harm one side.

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